Dual business approach for small and medium western PCB manufacturer

Very recent developments in the European and here in particular the German PCB industry provides additional proof that the topic “PCBs from Asia traded by western PCB manufacturer” written and published by CML EurAsia in US, Mexican, European and some German media in October 2012 couldn’t be more present and up-to-date.

Embracing the business model, described in the article, where western PCB manufacturer follow a dual approach as business strategy might now be more important than ever. Selling PCB’s from their own in-house production together with PCB’s purchased in Asia, provide them overall with a stronger bottom line result.

The situation in Germany today:

Eight years back the number of active PCB producer in Germany was just a bit shy of the 100 mark. By 2012 this number went down to 76.

This rocky road for German (and other European/Western) PCB producer does and will continue. Multek Germany will close its doors in autumn 2013 (380 staff), In March 2013 Schoeller reduced its workforce by 40 people. In the same month (March 2013) the PCB producer Rinde Regeltechnik announced insolvency.

The CEO of Rinde Regeltechnik envision now to increase the trading part of their business beyond 20%, if a potential investor to take over the company will be found. His argument: “Customers like this model”.

Looking beyond the borders of Germany into the neighbor country Austria, AT&S Klagenfurt Leiterplatten just announced that this PCB production facility is set to close down by the end of 2013.

This snapshot of current events within the European PCB manufacturing industry signals a tough start into the first half of 2013.

CML EurAsia’s Sales & Marketing Director, Theo Langer, highly recommends to reconsider the scenarios described in the publication mentioned above. “If you as western PCB producer conclude that this dual approach for your business strategy might be of value, please feel invited to talk to a credible partner like CML who is the expert and global leader in conveniently sourcing PCB’s from Asia”, Mr. Langer adds.